Ask Terry Questions Definition of “still working” for retirement accounts

Definition of “still working” for retirement accounts

By Terry Savage on November 28, 2023 | Financial Planning / Retirement

I keep reading that one must take RMDs starting at age 73, always with the caveat of “unless you are still working”. My situation is that I am about 5 years away from that point, and am retired. However, I have a small part-time job as a public official which yields about $1,000/year, which I expect to still have when I reach RMD time. My question, then, is “What is the definition of ‘still working’ under this and similar circumstances?”

Terry Says

You’re a bit confused. You don’t have to take an RMD from a 40l(k) plan if you’re still working for the company.
BUT you MUST take an RMD from your IRAs (except Roth of course) no matter how much money you are earning in retirement, once you reach age 73.

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